Around the end of February, it is expected that the first works for the construction of the liquefied natural gas terminal in Vasiliko will begin, while efforts will be made for delivery of the project even earlier than July 2023.
This was stated by the EPC Executive Manager, George Christou, on behalf of the Chinese giant that undertook the construction of the liquefied natural gas import infrastructure (China Petroleum Pipeline), noting that the basic design has been completed by more than 90%.
READ ALSO: Big mess with LNG – The Chinese demanded compensation
“The required permits for the first works have been secured and the construction site offices have been installed on site. “We believe that by the end of February, the first works in Cyprus will have started,” he said.
According to Mr. Christou, from the previous meetings with all stakeholders, “the clear will of all involved for the shortest possible completion of the project in Vassilikos was revealed and solutions were given to issues caused by the pandemic ».
Asked about the issues that emerged from December 2019, when the project agreement was signed, he said that the agreement was concluded just before the Covid-19 pandemic occurred. “Nevertheless, the project could not start, as the financing of the European Banks was pending, while the Notice to Proceed was given in May 2020,” he said.
In addition, he continued, “pending the selection of the Supervisory Authority (Owner's Engineer), the Commencement Date was set for September 28, 2020, in the midst of the peak of the pandemic.”
The CPP spokesman stressed that “this period to date has been described as one of the most difficult ever in the global market, as no one was able to plan and predict safely the next day.” As he said, “many important projects worldwide have been canceled and many have had to be redefined in terms of their viability”, noting that “the cost and delivery time of raw materials and equipment has skyrocketed, without anyone being able to commit or guarantee final delivery “.
Despite the increases that are recorded, underlined George Christou, “CPP, with its experience and size, has managed to provide the raw materials and equipment required for the project, keeping prices and delivery times at manageable levels.”
He stressed that the revised timetable, which provides for the delivery of the project in July 2023, “will be observed, with an effort even for its improvement, considering that there will be no further unforeseen situations”. He reminded that, initially the project would be completed around the end of 2022, but due to the above problems created by the pandemic, an adjustment was made, taking into account all the new data.
Regarding the ship “ETYFA Prometheus”, which is the largest and most complex part of the project, he said that the works, at the COSCO shipyard in Shanghai, are in full swing. “Currently the two most vital units, the Regas unit and the Power Module are under construction,” he said, noting that with the completion of this work, the ship will be converted from a simple carrier. Liquefied Natural Gas (LNGC), in a floating storage and regasification unit (FSRU), while fully maintaining its original functions as a merchant ship.
“The work is indeed time-consuming, as it requires the transportation of a lot of materials and equipment from distant places, such as Europe, facing huge delays due to the backlogs that have been created in the global transport chain,” he added.
Responding to the various criticisms that have sometimes been made about the project, Mr. Christou said that the importance of this project is undeniable and its benefits are significant, at multiple levels and that it is difficult to understand the reasons for any criticism.
“In terms of benefits, I will refer indicatively to the geopolitical upgrade of Cyprus's position, the energy autonomy it will acquire, the improvement of the ecological footprint, with the reduction of pollutants, to the saving of tens of millions of euros per year (from the sanctions it imposes on us today “even reducing the risk of pollution in the region, as they will no longer deliver heavy fuel oil tankers,” he said.
At the same time, Mr. Christou referred to the footprint that the project will have in the market, as in addition to the supply of equipment, through local representatives and the involvement of contractors and human resources to carry out the work, there will be significant transfer of know-how, contributing to upgrade plans. of the island, at an energy hub in the Eastern Mediterranean.
“In the context of the above, it is difficult to understand the reasons for the possible criticisms, especially when this project is mostly funded by the EU, it was awarded through an International Tender, under the detailed supervision of the Cypriot authorities and European institutions. “The result was accepted by the European Banks, without any objection and is carried out under the strictest procedures, following international standards and under constant supervision”, he added.
The consortium that undertook the project, continues, holds a leading position in the global market, having built in recent years 15 port facilities and over 120,000 km of pipelines, noting that the project is considered the largest single project in Cyprus, as never before investment involving ship ownership, offshore facility ownership and land ownership.
“The Cypriot government, with the completion of this project, will now have full ownership and operation of a complete facility, having the additional ability to provide other services, such as LNG supply and possible LNG exports,” he concluded.
Source: KYPE
